This pioneering investigation explores how unconditional accounting conservatism (CONACC) temporally moderates the link between robust corporate governance (CGOV) and strategic corporate social responsibility (CSR) implementation. This study aims to address a critical gap in understanding how accounting policy choices shape sustainability outcomes.
Analyzing longitudinal data (2016–2023) from 202 environmental, social and governance (ESG)-listed European firms, the authors use lagged variable modeling to capture the temporal dynamics of conservatism’s influence on the alignment between good corporate governance (GCGOV) and corporate social responsibility strategy.
The temporal analysis reveals that unconditional conservatism operates as a delayed enhancer rather than immediate moderator − significantly strengthening governance credibility and CSR transparency over multi-year horizons despite showing negligible short-term effects.
As the first empirical demonstration of CONACC’s time-phased catalytic role in GCGOV−CSR strategy integration, this research provides regulators with evidence-based insights for designing phased ESG reporting frameworks that account for accounting policy impacts.
